The Lycopodium share price shot up over 6% today. We look at the company’s recent financial performance and new projects.
The post Why the Lycopodium (ASX:LYL) share price is on the rise today appeared first on The Motley Fool Australia. –
The Lycopodium Limited (ASX: LYL) share price shot up over 6% earlier today, before pulling back slightly. At the time of writing, Lycopodium shares are trading at $5.05, up 3.48%.
Let’s take a look at what Lycopodium has been up to and what might be lifting the share price.
The Orezone Gold Corporation Project
Lycopodium is an engineering and project management consultancy company with a focus on the Minerals sector. The company’s target markets extend across the Asia Pacific region, North America and Africa.
Earlier this week, Lycopodium announced that the company had been awarded a contract to provide engineering, procurement and construction management services for Orezone Gold Corporation’s State 1 Oxide Process Plant for the Bomboré Gold Project.
Responding to this win, Lycopodium’s Managing Director Peter De Leo said:
Having supported the initial study work and Front End Engineering Design for the project out of our Toronto office, we are very pleased to continue to support Orezone in the development of Bomboré. With vast experience in successfully designing and constructing gold projects in Africa, we will draw on our specialist expertise in Australia, Canada and Burkina Faso to deliver this significant project.
How has Lycopodium performed recently?
In the last released shareholder report, the company noted that regardless of the growing impact of COVID, its projects have been generally unaffected. The report goes on to boast FY20 highlights including a $211.1 million revenue and $11.8 million in earnings before interest, tax, depreciation and amortisation (EBITDA).
While COVID didn’t strike too hard against the company’s current projects, the Lycopodium shareholder report further notes that “the pandemic has significantly impacted the award and commencement of new opportunities coming to market”.
Despite this impact, in December Lycopodium also announced that it was awarded the contract to provide engineering and procurement services for the Sandfire Resources Motheo Project located in Botswana’s Kalahari Copper Belt.
Lycopodium shares are up more than 8% this week. On the current Lycopodium share price, the company has a market capitalisation of $193.93 million.
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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.